Airline Market Power and Intertemporal Price Dispersion

Gaggero, Alberto A.; Piga, Claudio A.

doi:10.1111/j.1467-6451.2011.00467.x

Cited by 104 publications

(69 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In line with this, Gaggero and Piga (2011) agree that on average, prices are higher around Christmas (and Easter). In addition, travelers are less likely to grab a bargain: Fares are on average less dispersed compared to the rest of the year, as airlines anticipate more customers with a higher willingness to pay.…”

Section: Driving Home For Christmas -Holidays and Travelingsupporting

confidence: 74%

Christmas Economics - A Sleigh Ride

Birg

Goeddeke

2014

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract Do you believe that at Christmas time the gas prices, the economy and the number of suicides peak? Do you think that the value of presents you are giving to your beloved is of importance? We show in this paper that conventional wisdom about Christmas is often doubtful. Furthermore, we give an idea of how Santa Claus -and maybe you -is able to …nance Christmas celebrations, why emergency departments are a place to especially avoid during this time of the year and why Christmas tree growers might care to explain the di¤erences across species to you this year. We cannot clearly establish whether Christmas entails a welfare loss or gain, however, we give you an idea as to which institutional settings might reduce a potential welfare loss. Also, we give advice about which behaviours might get you more Christmas presents from Santa this year. Finally, we …nd that more research is needed to give conclusive reasons why Santa Claus actually brings presents to (nearly) everyone. Terms of use: Documents in EconStor mayJEL classi…cation: A12, D1, D6, E3, H4, I1, Z1, XM45

show abstract

Section: Driving Home For Christmas -Holidays and Travelingsupporting

confidence: 74%

Christmas Economics - A Sleigh Ride

Birg

Goeddeke

2014

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…Di¤er-ences between fares posted on di¤erent booking days are less pronounced. This …nding is in favour of competitive-type price discrimination, in line with Borestein and Rose (1994), Stavins (2001) and Giaume and Guillou (2004), and in contrast to Gerardi and Shapiro (2007) and Gaggero and Piga (2011). Table 9 illustrates the results of the Extended Model II by which we investigate IPD further.…”

Section: Gmm Estimatessupporting

confidence: 51%

“…The LLC's coe¢ cient is negative and signi…cant. 21 In regressions with Market Share, LCCs appear to price 23% lower than FSCs, whilst in regressions with HHI as the predictor, LCCs appear to price 41% lower than FSCs. The di¤erent impact is due to the coexistence of Market Share and LCC in the same regressions.…”

Section: Gmm Estimatesmentioning

confidence: 99%

Airline Pricing Behaviour Under Limited Intermodal Competition

Bergantino

Capozza

2012

SSRN Journal

View full text Add to dashboard Cite

This paper empirically analyses airline pricing for short-haul ‡ights in contexts with no credible threat of inter-modal competition. To this end, we explore the southern Italian market since it is less accessible by other transport modes and thus fares are the direct outcome of air-related competition. We show, in fact, that market power matters, depending on the level of intra-modal competition, and that airlines apply di¤erentiated mark-ups. Besides, consistent with the implementation of inter-temporal price discrimination (IPD), we …nd a nonmonotonic inter-temporal pro…le of fares with a turning point included in the interval of the 43 th to 45 th days before departure. Finally, we provide evidence that in more competitive markets, airlines are more likely to engage in IPD.

show abstract

“…Dana (1998Dana ( , 1999aDana ( , 1999b argues that price dispersion occurs because of stochasticity, and that …rms set di¤erent prices, including discounts, to smooth out demand and reduce uncertainty. The work of Dana is discussed in Gaggero and Piga (2009) within the context of pricing strategies pursued by airlines.…”

Section: Introductionmentioning

confidence: 99%

Optimal Decisions in Two-stage Bundling

Dassiou¹,

Glycopantis²

2012

Recent Advances in the Analysis of Competition Policy and Regulation

View full text Add to dashboard Cite

We develop a generalised framework for pure bundling where buyer tastes for two goods are assumed to follow a normal distribution. In the literature optimal bundling decisions have been considered under the assumption that the weights of the two goods are …xed and equal. The only consideration is then to choose the pro…t maximising optimal price. Our approach is di¤erent and much more realistic. The monopolist …rst decides on the optimal weights of the two goods and in the second stage derives the pro…t maximising bundle price. Welfare and policy implications of our approach are derived and comparisons are made with those of the …xed weights approach.

show abstract

Airline Market Power and Intertemporal Price Dispersion

Cited by 104 publications

References 31 publications

Christmas Economics - A Sleigh Ride

Christmas Economics - A Sleigh Ride

Airline Pricing Behaviour Under Limited Intermodal Competition

Optimal Decisions in Two-stage Bundling

Contact Info

Product

Resources

About